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Is FICO worth it

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digitalrode0
New Member

Is FICO worth it

You sometimes ask for customer feedback so I have some to offer.

On 2/6/15 my Fico score was 845. Even I was impressed.

 

On 2/4/15 I had improved my home/auto insurance at a better rate with USAA. Of course they checked my credit. They liked that credit rating too, so they “automatically” sent me a USAA card with a great rate. That cost me 20 points with Fico.

 

In 8/15/15 I had used a 0% interest offer from USAA to purchase a new air conditioner for my home. That cost me another >100pt< hit from Fico.

 

On 1/9/15 I had paid off a vehicle loan, so I lost another 16 Fico points AND the opportunity to buy a new vehicle at little or no interest.

 

BUT WAIT… This joke has a great punch line.

 

I’m now at Fico 718. My “oldest credit card” still carries an interest rate almost 4x greater than ANY of my other cards. But if I cancel that worthless piece of plastic your wonderful “FORMULA” will completely lose its mind. My credit might go straight in the dumper.

 

Great job boys and girls! I’m now investing time and money waiting on the latest “alert” on what new ways FICO has devised to stick it to me. I’ll be sure to recommend your “service” to all my friends.

My feedback? Your “formula” needs some attention.

 

Your EX customer,

Ronald Scott Summers aka/deadbeat debtor.

Message 1 of 13
12 REPLIES 12
SouthJamaica
Mega Contributor

Re: Is FICO worth it


@digitalrode0 wrote:

You sometimes ask for customer feedback so I have some to offer.

On 2/6/15 my Fico score was 845. Even I was impressed.

 

On 2/4/15 I had improved my home/auto insurance at a better rate with USAA. Of course they checked my credit. They liked that credit rating too, so they “automatically” sent me a USAA card with a great rate. That cost me 20 points with Fico.

 

In 8/15/15 I had used a 0% interest offer from USAA to purchase a new air conditioner for my home. That cost me another >100pt< hit from Fico.

 

On 1/9/15 I had paid off a vehicle loan, so I lost another 16 Fico points AND the opportunity to buy a new vehicle at little or no interest.

 

BUT WAIT… This joke has a great punch line.

 

I’m now at Fico 718. My “oldest credit card” still carries an interest rate almost 4x greater than ANY of my other cards. But if I cancel that worthless piece of plastic your wonderful “FORMULA” will completely lose its mind. My credit might go straight in the dumper.

 

Great job boys and girls! I’m now investing time and money waiting on the latest “alert” on what new ways FICO has devised to stick it to me. I’ll be sure to recommend your “service” to all my friends.

My feedback? Your “formula” needs some attention.

 

Your EX customer,

Ronald Scott Summers aka/deadbeat debtor.


Excellent post, you capture very well the madness of it.

 

(BTW, I know it's small comfort, but I'm pretty sure if you cancel the 'worthless piece of plastic' the account will continue to factor in AAoA for another 10 years, so the

impact would not be immediate. But of course 10 years down the road it would have some impact)


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 2 of 13
Anonymous
Not applicable

Re: Is FICO worth it

Love this post. +1000.

Message 3 of 13
Anonymous
Not applicable

Re: Is FICO worth it

Great post!

Message 4 of 13
Anonymous
Not applicable

Re: Is FICO worth it

I have come to think of Fico as a game. I paid off a loan and lost 29 points. I spent a couple of hours about to burst as my scores were on the rise and I thought eliminating debt would be a positive. The good news is you will bounce back as you pay off the AC and the new card ages. I find this site so helpful. Its not companies twisting words and stories to get me to travel the path they choose but (mostly) honest everyday opinions and experiences. Fico may not give you all the rules plus the data points are counterintuitive to most with any business acumen but its is a game we all have to play.Frustration comes and goes and I feel your pain. Thanks for the post... 

Message 5 of 13
elim
Senior Contributor

Re: Is FICO worth it

Great Post

 

I'm very outspoken on this topic (so much i wonder how i'm not banned sometimes). I despise their scoring model.  Some wonder if It is either a complete joke or they are in bed with big banks.  There are so few data points in a credit file, any statistics major and programmer could write a better scoring model.   At least their forums are good (and their profit).

Message 6 of 13
Anonymous
Not applicable

Re: Is FICO worth it


@digitalrode0 wrote:

I’m now investing time and money waiting on the latest “alert” on what new ways FICO has devised to stick it to me.


Sorry to burst your bubble, but you are sticking it to yourself, myFICO is just the messenger. Don't like the message, don't listen to it. Creditors do and will keep doing it, since the message is very loud and clear for them. Smiley Happy
Message 7 of 13
iv
Valued Contributor

Re: Is FICO worth it


@elim wrote:

Great Post

 

I'm very outspoken on this topic (so much i wonder how i'm not banned sometimes). I despise their scoring model.  Some wonder if It is either a complete joke or they are in bed with big banks.  


Well, yeah. That's kinda the point - the primary customer for any credit scoring model is... lenders.  Risk management to maximize profit in lending operations.  That shouldn't really be news to anyone here.

 

But if by "in bed with" you mean something like "conspiring to keep everyone's credit scores as low as possible"?

 

No.

 

That would defeat the entire purpose of the scoring model - and banks would stop using a model that failed to provide a useful risk management scale.

 

(Despising how a scoring model treats your individual file or pattern of credit use doesn't invalidate the model, sorry.)

 


@elim wrote:

There are so few data points in a credit file, any statistics major and programmer could write a better scoring model.  


Err... no. Just no.

 


@elim wrote:

At least their forums are good (and their profit).


Very true. (On both counts.) 

 

EQ8:850 TU8:850 EX8:850
EQ9:847 TU9:847 EX9:839
EQ5:797 TU4:807 EX2:813 - 2021-06-06
Message 8 of 13
digitalrode0
New Member

Re: Is FICO worth it

 


@iv wrote:

@elim wrote:

Great Post

 

I'm very outspoken on this topic (so much i wonder how i'm not banned sometimes). I despise their scoring model.  Some wonder if It is either a complete joke or they are in bed with big banks.  


Well, yeah. That's kinda the point - the primary customer for any credit scoring model is... lenders.  Risk management to maximize profit in lending operations.  That shouldn't really be news to anyone here.

 

But if by "in bed with" you mean something like "conspiring to keep everyone's credit scores as low as possible"?

 

No.

 

That would defeat the entire purpose of the scoring model - and banks would stop using a model that failed to provide a useful risk management scale.

 

(Despising how a scoring model treats your individual file or pattern of credit use doesn't invalidate the model, sorry.)

 


@elim wrote:

There are so few data points in a credit file, any statistics major and programmer could write a better scoring model.  


Err... no. Just no.

 


@elim wrote:

At least their forums are good (and their profit).


Very true. (On both counts.) 

 


 

 

Well let’s just explore that idea a little further, shall we?

I do, in fact, believe that three financial, GIANTS, apparently working in consort, have devised a legal extortion SCHEME that would make the Mafia blush. These people rake in BILLIONS from a gullible public.

I’m feeling the need to establish a little credibility. I have never worked for those people, or any finance industry at all. But I do have a Masters in Economics and I do have the basics down pat.

I will GIVE you the secret to good credit in one sentence. Pay your bills on time and don’t live a lifestyle on credit you can’t maintain. You’re welcome.

Like most rules, there some exceptions. It is wise to use credit for “needs” (home, cars etc. and to shop for a rate when you do) and “must haves”  (medical, replacing essential items lost in a fire or other similar problems. )  There are other examples. I’ve never carried enough cash to buy a Rolex, but If I found myself throbbing with lust for one I’d put one on my card and then, this is important. Pay The Bill. Same for vacations.

If I don’t run out of space here, I can explain step-by-step how this ingenious scheme works.

Question: Who USES credit reports.   BUSINESS, that’s who,.

Question: Why have so many Americans over the last few years become so consumed with protecting their credit rating that they are willing to pay someone to monitor it.

Easy answer. We were distracted by an artificially created financial “crisis” in this country engineered by highly educated THIEVES (probably fraternity brothers of the one’s who drive the “monitoring” industry). They also raked in BILLIONS.

The thieves in business and the thieves in credit have worked hand-in-hand in this. Suddenly, the airwaves were flooded with ads on protecting your credit and, ironically, protecting yourself from FRAUD. That’s almost funny.

You may say: How can you say this was fake? Huge institutions failed. I say: so what?

The guys behind those businesses didn’t lose a dime except, maybe, on paper. The losers were the poor-sap investors what had poured their meager savings into an opportunity to make a quick buck. Tough break. They didn’t do their homework.

So how did that happen? Well, the crooks on the business end used politically popular catch-phrases like Equal Opportunity and Diversity to sell millions of lower income people homes they could not possibility afford with “no money down” because gosh-darn-it” Every American deserves he “right” to own their own home. These “underprivileged” who probably couldn’t understand eighth grade math, swallowed the hook. Eventually, reality set in they just bailed.

Now there were some elements of this fraud that were all too real. Consumer confidence plummeted. Credit became harder to get. This had a ripple effect on other business (Auto industry etc) and many jobs were lost. This had to be “fixed” so government .i.e., Obama stepped in and bailed everybody out, and the taxpayer picked up the tab. Government became de facto conspirators, government influence is easily purchased by “fat cats.”

So the rich got richer and poor got lean. Officials produced alligator tears on TV over the poor investor, but nobody actually game a damn about that. Money rules.

Now, if I haven’t made my point by now I’m wasting my time. If you really want to debate this issue, hit me with some facts and we’ll argue. Otherwise, it’s just your opinion, and, as they say…... You are entitled. Good luck with that.

Message 9 of 13
elim
Senior Contributor

Re: Is FICO worth it


@iv wrote:

@elim wrote:

Great Post

 

I'm very outspoken on this topic (so much i wonder how i'm not banned sometimes). I despise their scoring model.  Some wonder if It is either a complete joke or they are in bed with big banks.  


Well, yeah. That's kinda the point - the primary customer for any credit scoring model is... lenders.  Risk management to maximize profit in lending operations.  That shouldn't really be news to anyone here.

 

But if by "in bed with" you mean something like "conspiring to keep everyone's credit scores as low as possible"?

 

No.

 

That would defeat the entire purpose of the scoring model - and banks would stop using a model that failed to provide a useful risk management scale.

 

(Despising how a scoring model treats your individual file or pattern of credit use doesn't invalidate the model, sorry.)

 


@elim wrote:

There are so few data points in a credit file, any statistics major and programmer could write a better scoring model.  


Err... no. Just no.

 


@elim wrote:

At least their forums are good (and their profit).


Very true. (On both counts.) 

 


  errr yes Just yes.  It isn't MIT poker bot class.  All anyone needs is the CR's. They contain the Default rates.  Parse away.

 

 And I would bet when done... After the consumer paid off an auto loan (after paying on the 25th day of every month for 4 years) his/her scores would NOT have a major drop due to being a greater risk. The only reasons a score would drop is if the writers were to lazy to include the closed account and payment history (can't see that happening) or someone receives some benefit for causing an increased lending rate.

 

Many experience a 35 point drop after paying off their auto loan.

 

850 - 300 = 550 scoring range

35/550 = 0.06

 

6% greater risk for historically paying on time? and ready to purchase a new vehicle? What?  This screams sheep.

 

 

I also wonder why it takes years to roll out a completed scoring model that benefits the consumer.  Every other piece of major software in our lives updates daily.  

 

 ETA

 

"That would defeat the entire purpose of the scoring model - and banks would stop using a model that failed to provide a useful risk management scale." 

 

lol, There you go. It is VERY useful for the banks. greater profits.

Message 10 of 13
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